Based on various researches at Oak Spring University , Jpmorgan Elect PLC 0.01p is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Jpmorgan Elect PLC 0.01p
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jpmorgan Elect PLC 0.01p can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jpmorgan Elect PLC 0.01p, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jpmorgan Elect PLC 0.01p operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Jpmorgan Elect PLC 0.01p can be done for the following purposes –
1. Strategic planning of Jpmorgan Elect PLC 0.01p
2. Improving business portfolio management of Jpmorgan Elect PLC 0.01p
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jpmorgan Elect PLC 0.01p
Strengths of Jpmorgan Elect PLC 0.01p | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jpmorgan Elect PLC 0.01p are -
Ability to recruit top talent
– Jpmorgan Elect PLC 0.01p is one of the leading players in the Misc. Financial Services industry in United Kingdom. It is in a position to attract the best talent available in United Kingdom. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Jpmorgan Elect PLC 0.01p is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Jpmorgan Elect PLC 0.01p is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jpmorgan Elect PLC 0.01p emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Jpmorgan Elect PLC 0.01p has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Jpmorgan Elect PLC 0.01p has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jpmorgan Elect PLC 0.01p staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Jpmorgan Elect PLC 0.01p is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Misc. Financial Services industry. The technology infrastructure of United Kingdom is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Jpmorgan Elect PLC 0.01p
– The covid-19 pandemic has put organizational resilience at the centre of everthing Jpmorgan Elect PLC 0.01p does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Misc. Financial Services industry
– Jpmorgan Elect PLC 0.01p has clearly differentiated products in the market place. This has enabled Jpmorgan Elect PLC 0.01p to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Jpmorgan Elect PLC 0.01p to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Jpmorgan Elect PLC 0.01p in the Financial sector have low bargaining power. Jpmorgan Elect PLC 0.01p has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jpmorgan Elect PLC 0.01p to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Jpmorgan Elect PLC 0.01p has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of Jpmorgan Elect PLC 0.01p have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Jpmorgan Elect PLC 0.01p is present in almost all the verticals within the Misc. Financial Services industry. This has provided Jpmorgan Elect PLC 0.01p a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Jpmorgan Elect PLC 0.01p digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jpmorgan Elect PLC 0.01p has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Jpmorgan Elect PLC 0.01p in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Jpmorgan Elect PLC 0.01p | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jpmorgan Elect PLC 0.01p are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jpmorgan Elect PLC 0.01p is slow explore the new channels of communication. These new channels of communication can help Jpmorgan Elect PLC 0.01p to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Jpmorgan Elect PLC 0.01p has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Jpmorgan Elect PLC 0.01p should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Jpmorgan Elect PLC 0.01p products
– To increase the profitability and margins on the products, Jpmorgan Elect PLC 0.01p needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, Jpmorgan Elect PLC 0.01p has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jpmorgan Elect PLC 0.01p lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative at Jpmorgan Elect PLC 0.01p, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Jpmorgan Elect PLC 0.01p has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Jpmorgan Elect PLC 0.01p needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Financial Services industry have deep experience in developing customer relationships. Marketing department at Jpmorgan Elect PLC 0.01p can leverage the sales team experience to cultivate customer relationships as Jpmorgan Elect PLC 0.01p is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Jpmorgan Elect PLC 0.01p supply chain. Even after few cautionary changes, Jpmorgan Elect PLC 0.01p is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jpmorgan Elect PLC 0.01p vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the Misc. Financial Services industry, Jpmorgan Elect PLC 0.01p needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Need for greater diversity
– Jpmorgan Elect PLC 0.01p has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to strategic competitive environment developments
– As Jpmorgan Elect PLC 0.01p is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
Low market penetration in new markets
– Outside its home market of United Kingdom, Jpmorgan Elect PLC 0.01p needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Jpmorgan Elect PLC 0.01p Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jpmorgan Elect PLC 0.01p are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Jpmorgan Elect PLC 0.01p can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Jpmorgan Elect PLC 0.01p can improve the customer journey of consumers in the Misc. Financial Services industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jpmorgan Elect PLC 0.01p can use these opportunities to build new business models that can help the communities that Jpmorgan Elect PLC 0.01p operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. Jpmorgan Elect PLC 0.01p can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Jpmorgan Elect PLC 0.01p to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Leveraging digital technologies
– Jpmorgan Elect PLC 0.01p can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jpmorgan Elect PLC 0.01p is facing challenges because of the dominance of functional experts in the organization. Jpmorgan Elect PLC 0.01p can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jpmorgan Elect PLC 0.01p can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Jpmorgan Elect PLC 0.01p has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Creating value in data economy
– The success of analytics program of Jpmorgan Elect PLC 0.01p has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Jpmorgan Elect PLC 0.01p to build a more holistic ecosystem for Jpmorgan Elect PLC 0.01p products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jpmorgan Elect PLC 0.01p to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Developing new processes and practices
– Jpmorgan Elect PLC 0.01p can develop new processes and procedures in Misc. Financial Services industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jpmorgan Elect PLC 0.01p can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Jpmorgan Elect PLC 0.01p to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Jpmorgan Elect PLC 0.01p External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jpmorgan Elect PLC 0.01p are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Jpmorgan Elect PLC 0.01p with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
Regulatory challenges
– Jpmorgan Elect PLC 0.01p needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Misc. Financial Services industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Jpmorgan Elect PLC 0.01p demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Misc. Financial Services industry and other sectors.
Stagnating economy with rate increase
– Jpmorgan Elect PLC 0.01p can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Misc. Financial Services industry.
Increasing wage structure of Jpmorgan Elect PLC 0.01p
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Jpmorgan Elect PLC 0.01p.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Jpmorgan Elect PLC 0.01p.
Environmental challenges
– Jpmorgan Elect PLC 0.01p needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Jpmorgan Elect PLC 0.01p can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Jpmorgan Elect PLC 0.01p in the Misc. Financial Services sector and impact the bottomline of the organization.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jpmorgan Elect PLC 0.01p can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Jpmorgan Elect PLC 0.01p prominent markets.
High dependence on third party suppliers
– Jpmorgan Elect PLC 0.01p high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology acceleration in Forth Industrial Revolution
– Jpmorgan Elect PLC 0.01p has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Jpmorgan Elect PLC 0.01p needs to keep up with the evolution of technology in the Misc. Financial Services sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of Jpmorgan Elect PLC 0.01p Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jpmorgan Elect PLC 0.01p needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Jpmorgan Elect PLC 0.01p is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Jpmorgan Elect PLC 0.01p is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Jpmorgan Elect PLC 0.01p to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jpmorgan Elect PLC 0.01p needs to make to build a sustainable competitive advantage.